MARKET EYE-Sugar stocks fall after key state raises crop prices

Mon Dec 10, 2012 12:33pm IST

Related Topics

Stocks

   

* Shares in Uttar Pradesh-based sugar companies were trading
lower after the state raised the price at which sugar mills buy
the new season crop by up to 16 per cent to 290 rupees per 100
kg. 
* Morgan Stanley said in a note the hike in the price of cane in
the current sugar season by 2,920 rupees per tonne is much
higher than expectations of a 2,820 rupees per tonne hike.     
* "Profitability of north Indian millers is likely to be
dented," it added. 
* The hike in procurement price will increase the cost of
production, which, at around 35,000 rupees per tonne, is
comparable to the current spot sugar prices, implying "no
profits for the sugar division at the operating level," Morgan
Stanley added. 
* Shares of Balrampur Chini fell 5 percent and Bajaj
Hindusthan was down 1.25 percent, while Shree Renuka
Sugars fell 2.1 percent.

 (manoj.dharra@thomsonreuters.com)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage